In this global market we operate in, smooth and reliable logistic flow of goods across various markets and players is the business’ backbone. Due to the high volume of products’ flow in various industries, more and more companies look out for third-party logistics organizations that can provide a customized offer that handles their individual processes seamlessly from production to final destination. This process, often referred to as contract logistics, is projected to reach over 500 billion USD by 2031, growing at a CAGR of 7.5%.
However, with so many different types of logistics services available, it can be a challenge to choose the right solution for your business. What matters even more, is the right service provider, a one-stop-shop, that delivers a uniform and standardized quality of service level across the globe to ensure that your operations run smoothly. Follow along as we outline the three main benefits of outsourcing to contract logistics service providers and point out the main aspects to keep in mind when shopping around for a right partner.

Automation of shipping & warehouse management

Contract logistics can encompass different solutions, depending on your service provider but also the geography. Under this enigmatic phrase hides a full suite of supply chain management services, from order fulfillment to inventory management, automated shipping, and customized warehouse management, as well as inbound to manufacturing.
Regardless of the location of your business, contract logistics’ providers can support you in various ways, from the standard warehousing process that includes receiving, inspection, put-away, picking, packing, and shipping up to more complex solutions. This is especially convenient for global industry players who are looking to bundle logistics and packaging services under one roof and need a special or customized systems for managing warehouse operations via WMS and ERP interface.

Improved track & tracing for better order visibility

Extended contract logistics services provide built-in inventory management software that makes it easy to track goods in real time, manage stock keeping units (SKUs) and monitor performance over time. As a result, you can quickly optimize inventory levels and restock on time by setting up reorder notifications. This process also allows you to determine demand forecasts way in advance before it is time to restock. Having more control over inventory management ensures you meet demand while optimizing storage and avoid overpaying for deadstock.

Although track & tracing can be ideal for overseeing the delivery management processes, it can also perfectly allocate products based on their demand. By using connected packaging, you have real-time visibility of the movements of stock and stock levels, it helps you reduce turnaround time, size of pool, handling costs, as well as missing assets. This way you can find the most optimized route for shipments and automatically generate order tracking details to share with your customers, making the last-mile delivery process smooth and predictable. By tracking various types of events that occur to products and packaging during transport (such as shock, temperature, altitude, humidity, light, etc.), the system collects valuable insight about the transportation environment.

Enhanced control of your inventory anywhere in the world

Partnering with a contract logistics provider helps you save costs, time, and resources, while optimizing your logistics process and providing visibility into the supply chain. This way your staff can focus on other priorities than tracking lost SKUs during shipping and packing. Thanks to its scalability, contract logistics meets both small and large organizations’ requirements as it allows outsourcing a specific service or stage of transportation of warehouse management. Depending on the size of your business and the available budget, contract logistics is worth considering at various stages of your supply chain processes optimization.

For global companies it is important to select a global service provider that delivers the same level of service across all geographies under one point of contact. Remember though that every business is different and therefore you need customized solutions to adapt to your business and not the other way round. Finally, look for a supplier who provides maximum flexibility and reduces interruptions in operations using technology-neutral software solutions.

At Nefab we got you covered and offer customized contract logistics services. Depending on the scale and complexity of your warehouse operations, the company lets you choose one of their proven warehouse management systems or uses the customers’ own systems. Nefab also leverages the technology-agnostic track and trace software to provide full visibility of your stock from 110 countries around the globe, saving you up to 95% costs of implementing new devices. Thanks to Nefab’s dedicated processes and individual approach, the team can help optimize your supply chains today and tomorrow under one roof.

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